Gold Royalty Corp

Primary ticker: NYSE:GROY
Stage of development: Production
Primary minerals: Gold 85% / Copper 15%
Project to promote: Canadian Malartic, Cote, REN, Vares, Borborema
Project location: Canada, USA, Bosnia, Brazil
Website: goldroyalty.com

Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to invest in high-quality, sustainable, and responsible mining operations to build a diversified portfolio of precious metals royalty and streaming interests that generate superior long-term returns for our shareholders. Gold Royalty’s diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.

Cash: USD 4M
Debt: USD 65M

Major shareholders:
GoldMining Inc – 13%
Barrick Gold – 6%
Jimmy Lee – 4%
VanEck – 4%
Orion Resource Partners – 2%
Management Ownership – 5%

Financials

Management Profile

David Garofalo – Chairman and CEO

David Garofalo co-founded Gold Royalty Corp. in August 2020 and has served as CEO, President, and Chairman of the company since its inception. Mr. Garofalo has worked in various leadership capacities in the natural resources sector over the last 30 years. Prior to Gold Royalty Corp, Mr. Garofalo served as CEO of Goldcorp Inc. from 2015 to 2019. Prior to that, he served as CEO of Hudbay Minerals Inc. from 2010 to 2015, where he presided over that company’s emergence as a leading metals producer. Previously, he held various senior executive positions with mining companies, including CFO of Agnico-Eagle Limited from 1998 to 2010 and as treasurer and other various finance roles with Inmet Mining Corporation from 1990 to 1998.

He was named Mining Person of the Year by The Northern Miner in 2012 and Canada’s Chief Financial Officer of the Year by Financial Executives International Canada in 2009. He holds a Bachelor of Commerce from the University of Toronto and is a Fellow of the Chartered Professional Accountants in Canada and a Certified Director of the Institute of Corporate Directors. He also serves on the board of directors of the Vancouver Board of Trade and the Vancouver Symphony Orchestra.

What is your rationale for taking part in 121 Mining Investment?

GROY is looking for market support given the significant value proposition in the company. The company is at an inflection point as major assets ramp up production and significantly enhance the company’s cash flow profile which represents an important near term catalyst. The company intends to meet investors with interest in the royalty and streaming sector.

What recent news would you like to highlight to investors attending?

August 2 – Cote achieves commercial production
August 13 – GROY Q2 Results and Portfolio Update
September 11 – Adriatic Q2 results including update at Vares

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
See key assets ramp up to full capacity by the end of 2024 delivering significant growth in cash flow.

6 Months:
Outline 2025 outlook, observe portfolio assets continue to deliver and ramp up.

12 Months:
Deliver strong share price re-rating as inflection point in cash flow represents a potential catalyst for the company.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The main portfolio risk are delays in production or ramp however this is mitigated given Gold Royalty’s diversified portfolio and high quality operating partners such ash Agnico Eagle, Barrick, and Newmont.

What do you think makes your company such a compelling investment?

The company trades at a discount to NAV relative to peers and has significant growth in its cash flow profile in the near term. This growth is being driven by some of the largest, high-quality gold mines in North America with multiple decades of reserves embedded within the portfolio. As a royalty and streaming company, this growth and cash flow duration is fully bought and paid for with insulation from capital and operating costs.

What are the top 3 key investor takeaways?

1. High Quality Royalty and Streaming Portfolio providing exposure to over 240 royalties and streams providing significant growth and multiple decades of future revenue.
2. Portfolio is at an inflection point breaking into a much strong free cash flow position in the near term.
3. Experienced management team executing a disciplined growth strategy to enhance value on a per share basis.